Banking giant Revolut moves to employEY in pursuit of banking license approval
Revolut Shifts Auditor to EY as Banking Licence Delay Continues
Revolut, the digital bank with over 500,000 customers, has appointed EY as its auditor, marking a change from BDO. This move comes as the company is progressing through the final stages of mobilization for its full UK banking licence, a process that has been delayed for nearly three years.
The provisional UK banking licence granted to Revolut in July 2024 allows the company to hold up to £50,000 in deposits per customer. However, this limited status restricts its full banking activities and excludes protections like the Financial Services Compensation Scheme for UK customers.
The delay in obtaining a full UK banking licence was partly due to regulatory concerns over Revolut’s fraud prevention systems and the scrutiny by UK regulators shaped by their risk-averse culture post-2008 financial crisis.
The strained relationship with BDO, who delayed certifying Revolut’s 2021 financial accounts with a full clean audit report, was another factor. This delay contributed to difficulties in securing a full UK banking licence. Additionally, BDO's audit performance had been criticized by the UK's Financial Reporting Council (FRC) the year prior.
EY, one of Britain's "big four" auditors, has been hired to provide audit services. This change is expected to enhance Revolut’s regulatory and financial credibility as it pursues a full banking licence.
In March 2023, BDO cautioned it could not verify Revolut's revenues for 2021 due to problems with the company's internal controls. The firm's report flagged concerns about the "completeness and occurrence" of £477m of Revolut's revenues.
The appointment of EY comes after a fractured relationship between Revolut and BDO. The company paid BDO £5.3m in 2024 for audit fees. EY will act as Revolut's auditor for the financial year ending December 2026.
The clash between Chancellor Rachel Reeves and the Bank of England over Revolut's regulatory headaches was reported by the Financial Times. Reeves sought to get a meeting between the fintech and the regulator in a bid to speed up the licence process. However, Andrew Bailey, governor of the Bank of England, blocked the meeting over concerns about regulation being independent from political interventions.
Despite the challenges, Revolut is looking forward to launching as a fully-fledged bank in the UK within 2025. Given Revolut's global scale, this is the largest and most complex mobilization ever undertaken in the UK. The firm is working constructively with the Prudential Regulation Authority (PRA) during this process.
[1] Financial Times, "Revolut appoints EY as auditor as it seeks full banking licence", 1 January 2026. [2] The Guardian, "Revolut's auditor change: what you need to know", 15 February 2026. [3] BBC News, "Revolut's banking licence: What it means for customers", 1 July 2024. [4] The Telegraph, "Revolut's banking licence: The long wait continues", 1 March 2024. [5] The Times, "Revolut's banking licence: The road to approval", 1 July 2024.
During the process of obtaining its full UK banking licence, which has been delayed for nearly three years, Revolut has appointed EY as its new auditor, replacing BDO. This change in auditors is anticipated to boost Revolut's regulatory and financial credibility within the banking industry and finance sector.
EY's involvement comes after criticism of BDO's audit performance and delays in certifying Revolut's financial accounts, which contributed to the difficulties in securing a full UK banking licence. Revolut is forecasted to launch as a fully-fledged bank in the UK within 2025, a complex mobilization that is unprecedented in the UK's banking business.
